EUDR: My Letter to the European Commission
I recently sent a letter to European Commission President Ursula von der Leyen and the Director-General of DG Environment, calling for a softer introduction of the European Union Deforestation Regulation (EUDR). With less than four months remaining until the EUDR takes effect on December 30, 2024, it is crucial to address the implementation challenges that could significantly impact trade, businesses, supply chains, and consumers.
Emerging Challenges
The EUDR is a landmark regulation aimed at protecting forests and biodiversity by establishing more sustainable supply chains. However, the absence of clear guidelines and tools from the European Commission is complicating the adjustment process for many stakeholders, particularly vulnerable smallholders in exporting countries. This confusion is also affecting businesses and national authorities, many of which are still unprepared for compliance. The complex nature of global supply chains makes it difficult to apply a “one size fits all” approach as envisaged by the regulation.
Economic and Social Risks
In this climate of uncertainty, the economic and social risks associated with the EUDR are significant. Expected price increases could heavily impact European consumers, already strained by inflation, as well as smallholders in producing countries. Excluding these producers from supply chains aimed at Europe risks exacerbating poverty and, paradoxically, could increase deforestation rather than mitigating it.
Our Proposal for a Balanced Solution
To overcome these challenges and ensure the EUDR‘s success, at Competere we have presented a detailed proposal to the European Commission. Our goal is to find a balanced solution that protects the environment while supporting businesses, European consumers, and producing countries. We propose:
- A Two-Year Transition Phase: Allowing all stakeholders ample time to adapt to the regulation gradually. This period would enable businesses and smallholders to adjust their practices without facing immediate penalties.
- Creation of a Permanent Committee: Establishing specialized workgroups for each commodity to facilitate continuous information exchange and effective monitoring of implementation. This committee would include a broad spectrum of stakeholders, including producer countries, supply chain operators, industry associations, and national authorities.
- Temporary Suspension of Sanctions: Implementing a temporary suspension of sanctions during the transition phase while maintaining the EUDR’s required controls. This approach would encourage compliance without penalizing those who are making genuine efforts to adapt.
Moving Forward
We strongly believe these measures will pave the way for a more effective and fair implementation of the EUDR. By addressing these issues proactively, we can achieve the regulation’s environmental goals without causing unintended economic and social harm. The European Commission must consider these proposals to ensure that the EUDR not only protects forests and biodiversity but also supports the livelihoods of millions of smallholders and meets the needs of European consumers.
We invite all stakeholders to join us in advocating for a smoother implementation of the EUDR. Together, we can work towards a sustainable future that balances environmental responsibility with economic and social well-being.
